Condition for liquidation - winding up, Business Law and Ethics

Assignment Help:

Condition for liquidation:

The liquidation itself may render a charge over the company's assets void in any of the following circumstances:

(a)     the charge was not registered within 42 days of creation as required by s.96;

(b)     the charge is a floating charge created within the period of 12 months before commencement of liquidation (paragraph 24 below), or

(c)     the charge is void as a fraudulent preference (paragraph 28 below).

If the charge is void the receiver's powers and appointment lapse and he must account to the liquidator for his transactions and the assets of the company still under his control.

If there are not sufficient other assets to pay preferential debts those debts are paid out of property subject to a floating charge in priority to that charge.  It is the duty of the liquidator to ensure that debts are paid in their due order of priority.


Related Discussions:- Condition for liquidation - winding up

Unwritten sources , UNWRITTEN SOURCES OF ENGLAND LAW: However common l...

UNWRITTEN SOURCES OF ENGLAND LAW: However common law may be illustrated as that branch of the law of England that was developed through the English courts on the basis of the

Liquidators powers, Liquidators' Powers:                              ...

Liquidators' Powers:                                       The liquidator (in any type of liquidation) has numerous statutory powers but in the exercise of some of them he mus

Guide - african customary law, Guide - African Customary Law Furth...

Guide - African Customary Law Further the courts are to be "guided" through African customary law.  Conversely this provision provides a judge discretion whenever to allow

Explain the meaning of class rights, Question 1: (a) Who is a director...

Question 1: (a) Who is a director of a company and describe how he may be appointed. (b) What are the duties owed by directors under the Companies Act 2001? Question 2

Ethical and professional requirements, It has been said that "auditors cann...

It has been said that "auditors cannot legitimately serve the 'user' public because they are hired and fired by the management of the company being audited. If management does not

Define a conflict of interest, Question  How does the RTL Code define ...

Question  How does the RTL Code define a 'conflict of interest'?  Give one example of how the RTL Code suggests a conflict of interest may arise.

Resident magistrate''s court , Resident Magistrate's Court Establis...

Resident Magistrate's Court Establishment Further Resident Magistrate's Court is constituted through S.3 (1) of the Magistrate's Courts Act that is provides that 'ther

Article 4 - state responsibilty, Article 4 - State Responsibilty Articl...

Article 4 - State Responsibilty Article 4. Under this Article a State shall be responsible for those territories in its jurisdiction which have different status under its domes

Golden rule - presumptions of construction, Golden rule: Conversely th...

Golden rule: Conversely the so-called 'golden' rule will be utilized through the court in order to avoid arriving on an absurd decision under the literal rule of construction.

Evaluate nature of phoenix activity, Q. Evaluate nature of phoenix activity...

Q. Evaluate nature of phoenix activity? The literature on phoenix activity and the stakeholders consulted in this project emphasised that phoenix activity has evolved significa

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd